Rookies who are eager to quickly build a client base might be inclined to cast the widest possible net as they begin prospecting. However, experts say that may not be the most effective approach.
“Rookies should have a target audience,” says Sylvia Garibaldi, principal at Toronto-based SG & Associates. “If they don’t, they won’t know where to network.”
Rookies need to understand the types of people they can help and try to stick to that market, says Joanne Ferguson, president of Toronto-based Advisor Pathways. Once they define their niche, they’ll find there are plenty of potential clients out there.
A good first step is defining your ideal client. Consider the types of individuals who would benefit from your skills the most, and who you would enjoy working with. The next step is finding out where those individuals spend their time.
For example, if you’re looking for young families, keep an eye out for kid-friendly community events. If you want to target entrepreneurs, research different entrepreneurial organizations and attend their networking events.
Don’t limit yourself to connecting only with people who might become clients. Even if a contact shows no interest in taking you on as his or her advisor, that person could potentially extend your network by introducing you to other people.
This is why Garibaldi encourages rookies to talk to friends, family members or local business owners that you admire and whose success you would like to emulate.
When you ask for their time, emphasize that you are only looking for advice. During the interview, describe your practice and the type of clients you’re seeking, and ask them how they were successful in developing their own client base.
Says Garibaldi: “Everyone’s guard is down in this type of process because [they know] you’re not trying to sell to them.”
This will make them likely to listen to you and want to help you brainstorm ways to meet new people. In addition, they may be able to introduce you directly to people who fit the description of your ideal client.
Another way to make contacts is by volunteering your time for local charities. Just make sure you’re thinking strategically, says Garibaldi. If your purpose is to meet prospects or expand your professional network, you want to be engaging in an activity that will facilitate that interaction.
Says Garibaldi: “Sit on a committee or board [of a local charity] and you will start to meet people and conversations will start flowing.”
You also want to choose a cause that is likely to resonate with your target market, and one you feel good about supporting. “You have to be passionate about it and sincere about sitting on the board,” says Garibaldi, “because if you’re not, it’ll become evident.”
This is the second component of a three-part rookie survival guide. Up next: Marketing strategies for new advisors.